Would you like to take out a loan with several borrowers? Maybe finance a larger joint project and increase creditworthiness for lending? Or is it about clear lines? So that the person who benefits from the loan does not avoid liability?
There are many good reasons for joint borrowing, but unfortunately there are also some reasons why. We support your project with neutral information so that the joint financing does not turn into a financial adventure.
Multi-borrower loan – implement joint projects
Taking out a loan with multiple borrowers can be the only way to make large loan projects financially viable. Against the background of joint liability, each creditor puts his personal credit rating on the balance of the credit rating. Investments that would not be feasible on their own or that would be very difficult to implement are suddenly very easy to realize.
The most typical example of this from the family area would be the property purchase of young couples. In most cases, it is only the common creditworthiness that makes financing in the first place able to be approved. The goal of joint borrowing could also not be more appropriate. The home will be financed, in which both partners and later their children will live.
This example of multi-borrower loan could also include grandma and grandpa. Instead of paying rent to strangers or companies, they would support their families with their monthly rent payments. As an owner, you would not necessarily have to appear in the land register, but you should receive a free lifelong right of residence for your credit risk. – As soon as the house is paid for once.
Joint credit – together through thick and thin
Borrowing together is a covenant that weighs at least as economically as a marriage vow. It is even easier to dissolve a marriage than to be released from joint liability by a credit institution before the loan is repaid. Every borrower should consider, as it were, whether they are willing to actually enter into this close economic alliance.
Good reasons to take out loans with several borrowers must far exceed the level of a pure friendship service. Each borrower has to weigh up the individual risks and benefits for themselves. This includes the question of financing a permanent value that will compensate for the loan in an emergency. Or are at least common life dreams being pursued?
The lower the personal benefit of a borrower in the overall project, the more skeptical is the borrowing. A very typical example of when loans with several borrowers become problematic is the support for loan requests from the self-employed. Any self-employment involves high risks. No entrepreneur can safely assume that his company will continue to operate successfully in a few years.
Credit with the partner – Bank specification
Credit institutions are currently faced with the problem that their classic business model is collapsing. In terms of the economy as a whole, the money supply has doubled in recent years. Secure investments with fair interest rates became a scarce commodity. The low interest rates on the revenue side have a lasting impact on the lenders’ corporate profits. As in the past, a loan loss allowance, no bank wants to afford it.
Only secure loans are to be granted. From the bank’s point of view, a loan with several borrowers is much safer than a loan to an individual. As a result, some credit providers force married couples into joint liability or do not grant credit. The application conditions already state that married couples must apply for each installment loan together.
Credit customers should quickly turn their backs on this business model. It massively undermines the legal protection of the economic self-determination of each spouse for themselves. Loan alternatives from credit institutions that do not immediately “throw out the child with the bathroom” offer free loan comparisons on the Internet. In case of doubt, even a higher interest rate would be more acceptable than to be pushed into the liability union.
Compensate for poor creditworthiness – guarantor or co-applicant
Guarantors or co-applicants require credit institutions if the personal creditworthiness of the prospective loan is too low to grant the desired loan. Ultimately, the requirement for multi-borrower credit is understandable from a real credit risk perspective. The co-owner is suggested as a way out, since the credit request appears too risky from a professional point of view.
At the same time, the offer prompts you to go inside yourself and rethink the loan project. Not every loan request should be met by loan providers for ethical reasons. A rationally justified loan rejection protects people from over-indebtedness. Simply signing as a co-worker when professionals predict the loan default is not a good idea.
It would be more sensible and ethically justifiable to turn to loan offers that accept a higher credit risk even without a partner. Good Credit Lenders offers a serious central point of contact for somewhat more problematic loan requests. A loan with several borrowers would be avoidable, especially for private loans. The credit portal enables you to make serious contact with investors who are willing to invest, even for risk credit without a partner.